According to the new classical economics, changes in monetary policy will only impact GDP if:
a. they impact the price level.
b. they are unpredictable.
c. people have perfect information about these shocks.
d. None of the above.
B
Economics
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Your textbook authors use the urban traffic example to show
A) why economics cannot explain non-financial processes. B) how social cooperation emerges when people act under generally accepted rules. C) how a smooth flow of traffic can only be achieved by detailed, central planning. D) how a smooth flow of traffic can only be achieved if people drive in the public interest.
Economics
How does the shape of the aggregate supply curve affect macroeconomic analysis and policy making? Illustrate your answer with the appropriate graphs
Economics